CORPORATE GOVERNANCE CORPORATE GOVERNANCE The Group follows the Corporate Governance Code referencing Appendix 14 of the Hong Kong Stock Exchange Listing Rules and contains principles of good corporate governance as well as pertinent provisions. Our commitments to sustainable development are underpinned by robust governance by management and the Board of Directors, our highest governing authority. ESG GOVERNANCE The ESG Committee is in charge of putting our ESG Framework into action. It is chaired by the Group ESG Officer who reports to the Group Head, Governance & Sustainability and Executive Management Board. The ESG Committee is made up of senior representatives from crossfunctional departments and regions, with dedicated sustainability responsibilities. The Board of Directors provides the overall stewardship and strategic direction on sustainability management. Working closely with the Group Head, Governance & Sustainability and Executive Management Board, the ESG Committee carries out the action plans relating to sustainability strategies, policies, business practices and performance targets and integrates ESG factors within the Group’s operations. The Board of Directors reviews progress made against ESG related targets from the ESG 2025 Roadmap (i.e. Human Centric, Property Portfolio and Corporate Performance pillars under the ESG Framework) as disclosed in this report annually and also receives regular ESG updates from management during the board meetings. Secretariat: ESG Department Board of Directors Executive Management Board Approvals Report ESG Committee Approvals Report China Japan South Korea Singapore Australia India Cooperation ENTERPRISE RISK MANAGEMENT The Group’s Enterprise Risk Management Framework outlines a holistic and systematic strategy to identifying, assessing, managing, monitoring and reporting risks, including those related to the areas mentioned in our ESG Framework. Our risk management culture and management approach include both top-down and bottom-up engagement from the front lines to the four lines of defense. ESR assesses material ESG risks relating to the Group’s operations to proactively identify and analyse risks and opportunities. With the help of external experts and consultants, the ESG Committee monitors and analyses the market indicators and trends during the year. As climate change and diversity concerns are growing to be more important, we have focused on solar related initiatives and employee diversity metrics in 2021. In addition, we have identified sustainability and climate change risk as one of the key risks within the risk profile with mitigations which was reported to the Audit Committee in March 2022. people processes systems 4th Line of Defence: Board Oversight 3rd Line of Defence: Independent Assurance Internal/External Audit 2nd Line of Defence: Management and Assurance Risk Management Compliance 1st Line of Defence: Business Governance/Policy Management Operational Governance Financial Governance Policy Management For more information about corporate governance disclosures concerning the composition and workings, please refer to our Annual Report 2021. ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2021 34 PILLAR 3: CORPORATE PERFORMANCE
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